Just for grins, I tried removing the spaces from the "Cozi Common Code" target name, but that didn't help.

Again, this compiles just fine on XCode4 simulator, and it compiles just fine in XCode5 for running on physical devices, including an iPod and an iPad, but every simulator in XCode5 has this problem (iPhone/iPod/iPad, both normal and retina, on iOS5/iOS6/iOS7).

I'd REALLY appreciate anybody who can help me get to the bottom of this. Thanks!

In order to understand the error, you have to understand what the command is attempting to do.

In this case it's using Libtool, which is a slightly altered version of libtool. There are some options that are specified in the command line, but what we're looking for is the destination file, and this is passed in as the -o option, who's argument is /Users/jr/ios/app/iCozi/build/DevOnly-iphonesimulator/libCozi\ Common\ Code.a, and the type of library we're generating, and in this case it's -static. Both options together explicitly state that you're making a static library archive.

Because you're making a static library archive, the only thing you're actually doing is taking .o files and possibly .a files and turning them into another .a file. This can be roughly equated to the creating of a .zip file from a set of files (.o), and the contents of other .zip files (.a). There are very few things you can do while making this archive, for example you can't specify libraries that need to be implicitly linked while building a static archive, you can't specify that you're going to require entitlements.

libtool is complaining because it doesn't understand the options that are being used for a static library that are being passed in. In this case the options are:

These are options that are present when you're trying to link in an entitlements file, which means that some options is specifying the use of an entitlements file. In this case, you found the correct solution yourself, which was to remove the entitlements file specified in the project settings -> Code Signing -> Code Signing Entitlements -> DevOnly.